Adel Al-Shirawi, CEO of Tamweel Real Estate Company, told Al-Dustour: "The Gulf real estate market is saturated with" luxury housing "
During his visit to Doha, Adel Al Shirawi, Chief Executive Officer of Tamweel, said: "There is a strong demand for real estate finance in the GCC at this time, especially as the Gulf region has witnessed a major boom in real estate for several years. The size of mortgage loans in the GCC is currently around $ 1.3 trillion, while in the UAE alone it is more than $ 800 billion.
He stressed that developers should conduct continuous assessments of supply and demand data and the volatile and changing nature of the real estate sector in the region. Middle East developers and financiers should focus on medium and low-cost projects to ensure sustainable returns on investment because mid- and low-cost real estate and commercial projects will experience lower rates of price volatility than long-term projects.
Al-Shirawi pointed out that in-depth analysis of the nature of demand for residential projects shows that there are new trends that require developers to keep pace with the growing demand for low-cost, medium-sized residential projects that are commensurate with the needs of the larger segment of the average income population.
As for the high-priced "luxury residences", he said, not everyone can pay a million or 1.5 million dirhams for housing, so there has to be a shift in real estate projects in the region from luxury housing to economic housing suitable for categories Lowest level of income.
Al-Shirawi expected a shift in this regard in both Dubai and Qatar, stressing the importance of this shift in order to balance the forms and prices of supply and between different segments of society.
He pointed out that the region needs to invest in identity according to each city, whether it is related to trade, free zones, tourism or any other factors that help to develop the lifestyle.
Al-Shirawi said rents in the Gulf region were mainly dependent on the performance of Gulf economies. If the supply continues to fall short of demand, prices will remain high in terms of rents and real estate in general.
Al-Shirawi expressed his concern about the continued increase in demand for the real estate market and rents in the region, due to the increase in population and the increase of expatriate labor to most of the GCC countries.
He said that the demand for real estate in the Gulf region varies from one country to another and even from city to city, each city must be seen to see the size of supply and size required, and then divide the categories and segments of society, in the United Arab Emirates, for example, 10 thousand dirhams make up only 15 per cent, while those whose salaries exceed 15 thousand dirhams make up only 8.1 per cent.
In response to a question about the Gulf countries most attractive to real estate investments other than Dubai, Al Shirawi said that Dubai is still at the top, and that Abu Dhabi is witnessing a very large renaissance, and then comes Qatar as a state of economic and economic mobility and real estate, followed by Kuwait, Riyadh, Jeddah and Dammam.
Al-Shirawi said that the Saudi market will witness a tremendous renaissance during the next three years because the demand for real estate in Saudi Arabia reaches 200 thousand units annually, but it is impossible in any case to be more than 30 to 50 thousand housing units per year, Because the potential of the construction sector can not provide 50 thousand housing units, so there will be a deficit in the provision of housing units up to 150 thousand units will accumulate in one year.
Al-Shirawi stressed that Saudi Arabia will take great interest in real estate in the next three years.
He said that Dubai saw 15 thousand housing units in 2006, but this year it is expected that the number of housing units to be provided to 40 thousand housing units.
"The real estate boom will continue in the Gulf countries as long as oil prices continue to rise above $ 50 a barrel and growth continues to accelerate.
Adel Al Shirawi stressed that the demand volume is much higher than the supply of real estate in the Gulf market, explaining that contractors can not afford more than 20% of this demand